Chic Design is a manufacturer of large flower pots for urban settings. The company has these standards: E (Click the icon to view the standards.) E (Click the icon to view the actual results.) Requirements 1. Compute the direct material price variance and the direct material quantity variance. 2. Who is generally responsible for each variance? 3. Interpret the variances. Requirement 1. Compute the direct material price variance and the direct material quantity variance. (Enter the variances as positive numbers. Enter currency amounts in the formula to the nearest cent and then round the final variance amount to the nearest whole dollar. Label the variance as favorable (F) or unfavorable (U). Abbreviations used: DM = Direct materials) First determine the formula for the price variance, then compute the price variance for direct materials. DM price variance ( Actual Results Standards Chic Design allocated fixed manufacturing overhead to production based on standard direct labor hours. Last month, the company reported the following actual results for the production of 1,600 flower pots: Direct materials (resin) 16 pounds per pot at a cost of $6.00 per pound Purchased 27,040 pounds at a cost of Direct materials Direct labor 4.0 hours at a cost of $20.00 per hour $6.40 per pound; used 26,240 pounds to Standard variable manufacturing produce 1,600 pots overhead rate $7.00 per direct labor hour Direct labor Worked 4.5 hours per flower pot (7,200 $28,000 Budgeted fixed manufacturing overhead total DLH) at a cost of $19.00 per hour Standard fixed MOH rate $5.00 per direct labor hour (DLH) ... $7.60 per direct labor hour for total Actual variable manufacturing overhead actual variable manufacturing overhead Done Print of $54,720 Actual fixed manufacturing overhead $27,800 Standard fixed manufacturing overhead allocated based on actual production $32,000 hoose from any list or enter any number in the input fields and then click Check Answer. Print Done